ТEME, г. XLIII, бр. 1, јануар март 2019, стр. 241256
Прегледни рад https://doi.org/10.22190/TEME170417003J
Примљено: 17. 4. 2017. UDK 005.332.1
Ревидирана верзија: 19. 10. 2018.
Одобрено за штампу: 19. 10. 2018.
KANJI’S INTEGRATED MODEL FOR MEASURING
BUSINESS EXCELLENCE
Vesna Janjić*, Mirjana Todorović, Jasmina Bogićević
University of Kragujevac, Faculty od Economics, Kragujevac, Serbia * [email protected]
Abstract
Setting up business excellence as the primary business objective forces companies to
seek new ways and models to measure performance. The new and modern performance
measurement models need to make a balance among multiple criteria to form a unique
and complementary view of the company business performance. This paper presents one
of them, known as Kanji’s Business Excellence Measurement System (KBEMS), from
several business aspects. As a modern, strategic, multidimensional, and, above all,
integrated model for measuring and managing performance, this model integrates both
internal and external stakeholders and internal and external processes in order to
improve company performance.
Key words: business excellence, Kanji’s business excellence model, Kanji’s
business scorecard.
КАЊИЈЕВ ИНТЕГРАЛНИ МОДЕЛ У ФУНКЦИЈИ
МЕРЕЊА ПОСЛОВНЕ ИЗВРСНОСТИ
Апстракт
Постављање пословне изврсности као примарног циља пословања приморава
пословне субјекте да трагају за новим начинима и моделима за мерење перфор-
манси. Нови и модерни модели мерења перформанси треба да успоставе равноте-
жу између више критеријума како би остварили јединствен и комплементаран
поглед на пословне перформансе предузећа. У овом раду је представљен један од
модела, познат као Кањијев систем за мерење пословне изврсности (енгл. Kanji’s
Business Excellence Measurement System – KBEMS), у неколико аспеката послова-
ња. Као савремени, стратешки, мултидимензионални и, пре свега, интегрални мо-
дел мерења перформанси и управљања перформансама, овај модел повезује како
интерне и екстерне стејкхолдере тако и интерне и екстерне процесе у циљу по-
бољшања перформанси предузећа.
Кључне речи: пословна изврсност, интегрални модели мерења и управљања
перформансама, Кањијев модел пословне изврсности, Кањијеве
пословне табеле резултата.
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INTRODUCTION
The concept of business excellence has emerged in response to the
turbulent and highly competitive modern business environment. Business
excellence is the management concept that derived from the Total Quality
Management concept (TQM), and represents the last stage in its evolutionary
development. This concept requires excellence of products and services,
cost reduction, improving relationships with cu stomers, suppliers, and
other business partners, global recognition and image. It is based on the
basic principles and assumptions that ensure and involve balancing and
meeting the interests of all stakeholders, as well as integration of overall,
both financial and non-financial business performance. The superiority
achieved by applying the concept of business excellence relates to the
outstanding results which the company can achieve in relation to competitors,
while satisfying demands of all stakeholders (Oakland,Tanner, 2008, 734-
735; Rashnoodi, Parsfr, 2014, 62-71).
Company focus on business excellence raises the question of
performance measurement. Company performance and business excellence
should be expressed by a multidimensional indicators or a large number of
different qualitative and quantitative indicators, to be evaluated from
different aspects (Sorooshian, Aziz, Ahmad, Mustapha, 2016, 125-126;
Jovetić, Đurić, Marinković, 2015, 1201; Janjić, Todorović, Jovanović, 2015,
307; Parmenter, 2007, 22). An adequate measurement of business excellence
requires a proper choice of model for performance. There are several
business and organizational excellence models that apply throughout the
world and offer instruments for measuring and assessing performance, and
direct companies to business areas that need improvement. One of the models
used to measure business excellence is Kanji’s Business Excellence
Measurement System (KBEMS). It is a multi-dimensional model for
measuring and managing both financial and non-financial performance.
Bearing in mind the above, the research subject in this paper will be the
applicability of a contemporary model for measuring and managing
company performance, known as Kanji model. The aim of this paper is to
clarify the basic characteristics of this business excellence model, and to
indentify advantages and disadvantages through critical evaluation. Also,
through the empirical research, the goal is to identify the treatment of the
concept of business excellence on the example of a specific company.
Methodological basis of the work relies on qualitative and quantitative
analysis of the research subject. The empirical part of the paper is based on a
case study. For the purposes of the case study analysis, data were collected by
interviewing 50 employees from four sectors of a manufacturing company.
The first part of the paper will focus on the analysis of Kanji’s business
excellence model, as well as the Kanji Business Scorecard for performance
measurement. The second part will evaluate success in the application of this
model. The third part of the paper includes the results of empirical research.
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KANJI’S PERFORMANCE MEASUREMENT AND MANAGEMENT MODEL
KBEMS is an integrated performance management model, combining
internal and external stakeholders as well as internal and external
processesand. It was developed by Gopal K. Kanji, professor at Sheffield
Hallam University in the UK, as a system for measuring performance based
on critical success factors of business excellence. In order to test its
practical application, two studies were conducted in the initial stage of the
Kanji model formation, with the first study led by Kanji and his followers,
and the second by researchers who tried to combine Kanji model with other
philosophies. The first group of researchers confirmed the usefulness of this
model to improve organizational performance. In addition, they developed
a number of sub-models, such as Kanji’s leadership excellence model,
Kanji’s business excellence model for supply chain management, Kanji’s
Business Scorecard, and others. Some of these sub-models developed as a
result of the need to establish a separate model, suitable for different
functions and in different organizations (Chen, Songsithipornchai, Jang,
2012, 994). Another group of researchers combined ideas and concept behind
Kanji model with other philosophies, such as, for example, Confucian
business excellence model, to highlight the relationship between business
excellence and performance (Chen, Songsithipornchai, Jang, 2012, 995).
KBEMS model includes multiple criteria corresponding to critical
success factors, or areas that need to function well in order for a company
to be successful (Najmi, Hosseini, 2003; Kanji, 2001, 715-728). KBEMS
consists of two parts: a) Kanji’s business excellence model (KBEM) and
b) Kanji’s Business Scorecard (KBS).
Kanji’s Business Excellence Model
Since it is based on the TQM principles, the basic idea behind
KBEM is to point to the positive link between TQM principles and
company business performance. For this purpose, Kanji used the pyramid
model (Figure 1). In the pyramid model, Kanji starts with critical success
factors, business excellence being at the top of the pyramid. KBEM
consists of four key dimensions: top management, basic principles,
concepts, and business excellence. The base of the pyramid and the most
important part of KBEM belongs to top management, seen as a company
cornerstone, or the most important factor of organizational performance,
observed from an internal perspective. This means that management is the
most important driving force of quality improvement and business
excellence. So, company management is a major player in promoting and
controlling the implementation of all principles and basic concepts of the
model (Kanji, 2005, 1071).
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Figure 1. Kanji’s pyramid model Source: Kanji, 1996, 339.
KBEM model promotes four principles: customer satisfaction,
fact-based management, people-based management, and continuous
improvement, as shown in Figure 2. The principle of customer satisfaction
dictates the necessity of taking into consideration both internal and external
customers, so its implementation requires considering two key concepts:
internal customer satisfaction and external customer satisfaction (Kanji,
2002). The fact-based management principle is based on the view that
managers’ business decision-making should be based on facts, not on
emotions and intuition. The implementation of this principle implies a
comprehensive approach to measuring performance, which also includes the
so-called “soft variables” and “hard variables”, or performance areas, as well
as the establishment of appropriate links between them (Kanji, Moura e Sa,
2007, 53). For most companies today, employees are the most important
success factor. Hence, KBEM model insists on respect for the principles of
people-based management. Studies (Naghavi, Asri, Ezzati, Zarandi,
Hosseini, 2012, 8541-8542) have shown that customer satisfaction and
employee abilities are very closely linked, with good performance requiring
employee education and training. The principle of continuous improvement is
considered one of the most powerful principles when it comes to company
management (Naghavi, Asri, Ezzati, Zarandi, Hosseini, 2012, 8542).
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Figure 2. Kanji’s business excellence model Source: Janjić et al., 2015.
Figure 2 shows KBEM. Can bi seen that the ultimate goal of the
company is to achieve business excellence, which is realized through cause-
and-effect relationships. Causal link ranges from top management, i.e.
company management, which promotes the basic principles and key concepts
that take place and lead towards business excellence. By combining the four
important dimensions, fourteen KBEM criteria are identified.
Another important part of KBEM model refers to a measurement
system that serves as a tool or instrument to measure and evaluate
performance. Measurement system in this model is based on the results of
the survey, which includes questions relating to all items or dimensions of
business excellence, with statistical data processing. The most frequently
used statistical technique to process the questionnaire results is the
Structural Equation Model (SEM) (Chen, Songsithipornchai, Jang, 2012,
993). KBEM is characterized that each of these aspects is assessed
individually and that they have the same base, which means that all are
equally important. In addition, Kanji developed an approach to determine
which improvement and in which area has the greatest impact on the
overall business excellence (Chen, Songsithipornchai, Jang, 2012, 993).
Kanji Business Scorecard (KBS)
KBEM focuses on the system of internal processes and data
collection from company managers and employees. In modern business
conditions it is not considered enough, so it is necessary to evaluate the
performance from the external perspective, meaning that a company
success depends on its ability to meet the needs of all stakeholders, such as
customers, suppliers, investors, and the community (Striteska, Spiskova,
2012, 9). On these grounds Kanji Business Scorecard (KBS) is originated,
focusing on external evaluation of the company, i.e. measuring company
performance from external perspective. KBS theoretical basis lies in
Balanced Scorecard (BSC). Taking into account the constraints in
implementing BSC, Kanji proposed a new integrated framework for
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measuring business excellence, which starts from the premise that it is
essential for the company to measure the needs and expectations of all
those who will directly or indirectly affect the achievement of the
company objectives. Hence, KBS aims to supplement KBEM, putting
emphasis on measuring performance from the external perspective,
through key areas where strategic goals are established. The final result is
business performance excellence, which shows the combined effect of all
items (Figure 3) (Kanji, 2002, 723). For the analysis of the relationship
between individual items and presentation of the final results, structural
equation model is most commonly used.
Figure 3. Kanji Business Scorecard Source: Каnji, 2005, 1072.
The first dimension or a key KBS area is stakeholder value creation.
Value creation is the main prerequisite for the realization of goals and
strategies. Process excellence focuses on monitoring operational processes,
which need to be improved and properly carried out in order to meet
customer expectations. Improving organizational learning focuses on
continuous improvement, leadership, and teamwork in response to
changing conditions to achieve success, global competition, and customer
needs for new products. Increased stakeholder satisfaction is aimed at
satisfying the needs and expectations of all stakeholders interested in
achieving company goals. Hence, this KBS area includes internal and
external satisfaction of customers, suppliers, employees, investors, and the
wider community (Kanji, Moura e Sa, 2002, 269).
In each key KBS area there are strategic goals, by which key
performance indicators are classified, necessary for monitoring
implementation of the selected business strategy. Performance measures
under this model are defined on the basis of key factors of business
excellence and values for the organization. Stakeholder value perspective
includes financial and non-financial performance measures. The most
important financial performance measures are cash flow, return on equity
(ROE), and rate of return. This perspective emphasizes customer demand, the
ability to recruit and retain qualified workers, and others. The most important
excellence measures in the area of process excellence are productivity rate,
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non-fulfillment of customer expectations, deferred liabilities, and others. The
organizational learning perspective emphasizes the importance of training
and education at all levels of the organizational structure. Significant
measures in this area are the number of new products, the number and
relevance of improvement programs, existence of teams, and the like.
Stakeholder satisfaction measures are the level of satisfaction of customers
and suppliers, employee relationships with customers and suppliers, the
degree of satisfaction of employees and others (Kanji, Moura e Sa, 2002, 13-
27). Business excellence is achieved through simultaneous action in all these
areas, meaning that improvement in one area stimulates improvement in
another, thus achieving continuous improvement. KBS model is based on
organizational values, which form the basis for achieving process excellence,
organizational learning, and stakeholder satisfaction.
Kanji’s Business Excellence Measurement System
Based on the pyramid model, two structural models are developed,
KBEM and KBS. These two models are an integral part of Kanji’s Business
Excellence Measurement System (KBEMS). They are applied at the same
time to evaluate the overall company performance, and form a unique and
complementary view of the company business performance. KBEM model
(designated as part A) measures performance from the internal perspective,
in line with the view of management and employees. KBS model
(designated as part B) measures performance from the perspective of
external stakeholders, such as suppliers, institutions, state, and the wider
community. The final business excellence is obtained by combining the
results achieved in the framework of KBEM and KBS (Figure 4).
Figure 4. Kanji’s Business Excellence Measurement System Source: Rudsari, Oadi, 2016, 11
Every aspect within KBEM and KBS is assessed individually, and
for each item the company can win a maximum of 100 points, with no
single dimension omitted. Each dimension within KBEM and KBS models
is evaluated (part A and part B), and the result achieved and expressed
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through Business Excellence item in KBEM and KBS is the combined
effect of all the items in the individual models (Kanji, 2005, 1070-1073).
The overall result achieved by using KBEMS model is expressed by the
number of points, calculated using Kanji Certification Index (KCI). The
final business excellence index (for KBEM and KBS components) reflects
the effect of all estimated model relationships and is calculated as the mean
of KBEM business excellence and KBS business excellence, multiplied by
10. If KBEM business excellence is expressed with 60 points and KBS
with 70 points, it follows that Kanji Certification Index is equal to:1
KCI = (A + B) * 10/2 = 650
Companies use business excellence index as a tool for self-
assessment, or to answer how much they progressed over a certain period,
and as a basis for improving performance in the coming period (Rudsari,
Oadi, 2016, 5). Overall, the maximum number of points that the company
can achieve is 1000. It is believed that the result of more than 600 points is
satisfactory, and above 800 points excellent (Kanji, 2005, 1073). It should
be noted that if KBS is calculated for different stakeholders, business
excellence of part B will be the mean of results for each stakeholder.
CRITICAL ASSESSMENT OF KANJI’S MODEL
As there is no ideal model to measure and manage performance, this
model should be seen only as one of the possible solutions, with all its
advantages and disadvantages. Numerous studies on the implementation of
KBEMS point to the contribution and significance of this model for
assessing business performance. The research results (Hassan, Kanji, 2007)
showed a significant improvement in the overall organizational performance
index, and that KBEMS, as a holistic and comprehensive model for
measuring performance, is important and reliable for quality measurement
in health institutions. A survey carried out in the period from 21 March to
22 September 2010 in Bandar Abbas Electric Power Distribution Company
(BAPEDC) in connection with the assessment of the success of the
application of the term KBEMS included internal and external stakeholders
(Naghavi, Asri, Ezzati, Zarandi, Hosseini, 2012, 8544-8547). The study
included both internal and external stakeholders. The results showed low
performance excellence index, of 328.1 points. These results gave the
recommendations to company management in order to improve business
excellence.
1 The procedure of calculating the total number of KBEM and KBS points involves
multiple steps, but, due to limited space, we used the pre-given values.
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The results of these and numerous other studies, such as the ones on
KBEMS application in Iran’s municipality of Karaj (Rudsari, Oadi, 2016) or
the public sector in Portugal (Kanji, Moura e Sa, 2007, 52-55), with reference
to the foregoing, point out the following advantages of KBEMS model:
As an integral model, it includes financial and non-financial
measures and shows performance from multiple perspectives;
It focuses on organizational excellence (Naghavi, Asri, Ezzati,
Zarandi, Hoseini, 2012, 8545);
It measures performance from external and internal perspectives,
i.e. includes both external and internal stakeholders;
It is based on critical success factors and allows one to establish
and analyze the relationship between them;
It allows progress monitoring by comparing different departments
and organizations at different time intervals;
All system parameters are included and measured simultaneously;
It is linked with company strategies and values;
It highlights opportunities and suggestions for improvement;
It is applicable in many and various enterprises, only at the process
level, not at the level of the whole company. In the process of applying Kanji model, certain deficiencies are
observed. The two main shoretcomings in implementing Kanji model relate to the complexity of the measurement system and insufficient participation of employees in the organization. Since the model measuring system is based on statistical calculations and methods, KBEMS implementation requires additional work, time, and resources. As a solution, Kanji proposed making adequate software package. However, it should be noted that this solution requires considerable resources, both in terms of software purchase and installation, and employee training. The second shortcoming of the model is reflected in insufficient participation of employees in improving organizational performance. Suggestions of employees themselves are very important, so, in making decisions and plans, managers should take into account not only mathematical calculations, but create a space for the participation of employees in improving performance (Janjić, Todorović, Jovanović, 2015, 314). Employees should be encouraged to express ideas, and point to existing and potential problems, as important sources of continuous improvement. The value of employees’ small ideas is high. They are ready to implement their own ideas, which also contribute to creating a sustainable competitive advantage (Robinson, Schroeder, 2006).
One of the offered solutions to the problem with Kanji model is Kanji’s ranking-based model. The basic features of this model are that it is not complex to implement and does not require large investment. Research on the possibilities of using this model was implemented in a Taiwanese company for the production of bicycle parts. The results showed that the company improved different business areas by applying this model, and won numerous awards for quality (Chen, Songsithipornchai, Jang, 2012, 998).
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The essence of Kanji’s ranking-based model is to improve company performance by repeating the five-step procedure and that: gathering of information; sorting the average; analyzing and exploring the area to be improved; discussion and discovering of improvements; checking and evaluation of organizational performances. Kanji’s ranking-based model and its five steps can be used in any organization to improve business performance. As Kanji model basically relies on the principle of continuous improvement, even at the moment when the desired result is reached, the company should endeavor to maintain the superior performance because achieving excellence should not be the ultimate goal but a never-ending process.
CASE STUDY: EXAMPLE OF THE COMPANY X
The holding company in the field of manufacturing industry from
the Republic of Serbia (hereinafter referred to as X company) was selected
in order to empirically analyze the considered issues. As this company
achieved more than 70 million euro of total revenue and cca 4 million euro
of net profit in 2017, it is a very successful business entity. The mission of
the Company X is the achievement of its sustainable development that
enables value creation for owners, employees and customers. Corporate
governance objectives, such as an increase in economic efficiency, growth
and development, enhancing the confidence of both shareholders and
investors have been defined by the Corporate governance code. The goals
of continuous improvement of business processes, defined by the business
policy of Company X, are the following: the increasing of efficiency and
measurability of operational processes, and the increase in productivity,
through more rational use of capacities. Lean projects were completed in
one of the production segments, which resulted in an increase in
productivity of 12% at the end of 2015. The 5C technique is implemented
in all production segments. The reduction of waste, reduced consumption
of both water and energy (gas and electricity) were the effects of the eforts
made for continuous improvement. In the area of labor management, the
need for flexible engagement of employees and the achievement of a social
policy that guarantees a position for everyone who wants disciplined and
devoted work is emphasized. This company insists on promoting personal
integrity of employees, but also on their responsibility and development.
The company has integrated the quality management system and
environmental management system in accordance with ISO 9001: 2008
standards, namely SRPS ISO 9001: 2008 and ISO 14001: 2004, SRPS ISO
14001: 2005. The obvious reasons for selecting this company to analyze the
business excellence could be explained by the basic principles of this
concept, on the one hand, and its mission, objectives, and corporate and
business policies, on the other hand.
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For the purpose of analysis and case study implementation, the data
were collected by interviewing workers and using information from printed
and electronic publications of the company. In order to determine employee
attitudes towards business excellence, 50 of them from four sectors of
Company X were surveyed. They were offered statements that were to be
evaluated according to their importance. The workers were offered 15
statements based on the model of the Kanj's assessment for business
excellence. The offered statements have been classified into three groups.
Seven statements in the first group refer to the general aspects of business
excellence; the second group, which includes 4 statements, refers to the
internal aspect of the excellence of business processes, and finally the third
group, consisting of four statements, refers to the external aspect, i.e. the
stakeholders` attitude towards business excellence. Questionnaire data were
analyzed in the Statistical Package for Social Sciences (SPSS, Version 20.0).
Measurement of reliability and internal consistency of the variables
was carried out using the Cronbach's Alpha coefficient. Descriptive
statistics were used to measure the central tendency (arithmetic mean,
modus, median) and variability measurement (standard deviation). In
addition, the non-parametric test (Kruskal-Wallis test) was used in order to
compare the attitudes of different groups of respondents.
The structure of the surveyed workers by gender, age and professional
background is shown in Table 1. People with high professional skills and
middle age (from 31-50 years) dominate among respondents. Taking into
account their work, persons from four types of activities were surveyed. The
relative structure of the respondents according to the activities is as follows:
finance (16%), production (46%), services rendering (34%) and technology
(4%), ie. the share of the production and non-productive sectors is equal.
Cronbach's Alpha coefficient is 0.964. This result shows a high
level of internal consistency, good reliability and internal compliance of
the measurement scale (DeVellis, 2003). Table 2 presents a descriptive
analysis of the attitudes of the respondents. On the basis of the arithmetic
mean, whose value ranges between 4 and 4.5, it can be concluded that
respondents attached each of these statements to a high degree of
significance. Since the distribution is not normal, and hence the
arithmetic mean is not the best measure of the average, the median and
modus are determined. A high average score of more than 4.0 in all
statements from BE1 to BE7 indicates that respondents attach great
importance to different general aspects of business excellence. Also, in all
statements from BE1 to BE7, except for the BE2 statement, the most
significant score is 4, ie more than 45% of the respondents rated for grade
4. As for the BE2 statement, 50% of the respondents rated for grade 5,
which is confirmed by the value of the median of 4.50. High average
grades (the lowest is 4.30 for PE3), identified for all statements (PE1-PE4
and SE1-SE4), indicate that respondents show a high level of awareness
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of business excellence concept significance. In this context, it should be
emphasized that the same importance is given to process excellence, as an
internal aspect of business excellence, and the stakeholders' attitudes
towards business excellence, (an external aspect of business excellence).
Table1. Characteristics of respondents
No %
Gender
Male 23 46%
Fewmale 27 54%
Total 50 100%
Age
Up to 30 years 4 8%
31 – 40 20 40%
41 – 50 18 36%
Over 50 years 8 16%
Total 50 100%
Education
High school 3 6%
Faculty 44 88%
Master degree 3 6%
Total 50 100%
Scope
Finance 8 16%
Production 23 46%
Service 17 34%
Technology 2 4%
Total 50 100%
In order to test the homogeneity of the attitude of the respondents
regarding the business excellence, the sample of the respondents is
divided according to the activities they perform (the scope). The Kruskal-
Wallis test was applied to determine the significance of differences in the
attitudes of the respondents regarding the work (activity) they perform.
In fact, the activity of the respondents' do (finance, production, service or
technology) was used as a variable for segmenting the sample.
The analysis found that there are statistically significant
differences in the attitudes of the respondents regarding the following
statements: BE2 (2(3, n=50)=11.70; p=0.008); PE2 (
2(3, n=50)=10.66;
p=0.014); PE3 (2(3, n=50)=11.99; p=0.007); PE4 (
2(3, n=50)=13.52;
p=0.004); SE1 (2(3, n=50)=9.08; p=0.028); SE2 (
2(3, n=50)=9.08;
p=0.028); SE4 (2(3, n=50)=9.27; p=0.026). It has been identified that
respondents engaged in the service rendering attach the greatest
importance to all statements, and statistically significant differences have
been identified for them. As they direct communicate with their users
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(first and foremost, customers), this is completely logical. The employees
engaged in service activities valorize appropriately the importance of
different aspects of business excellence and its impact on the level of
satisfaction of end-users (customers).
Table 2 Descriptive Analysis
N Mean St. dev. Мe Мо
Business Excellence
Has strong financial performance (BE1) 50 4.28 0.671 4 4
Has high customer demand (BE2) 50 4.34 0.745 4.50 5
Achieves its goals (BE3) 50 4.28 0.671 4 4
Has performed recruitment and admission of
employees effectively (BE4)
50 4.06 0.620 4 4
Has achieved the desired product and services
outcome (BE5)
50 4.30 0.678 4 4
Has performed recruitment of highly outstanding
staff (BE6)
50 4.06 0.620 4 4
Has been able to maintain outstanding staff (BE7) 50 4.02 0.654 4 4
Process Excellence
The Organization delivers what it promises (PE1) 50 4.58 0.499 5 5
The Organization collects and disseminates a wide
range of complete and accurate performance
indicators (PE2)
50 4.44 0.541 4 4
The Organization compares its process performance
with that of its best competitors (PE3)
50 4.30 0.678 4 4
The Organization uses processes measurements to
improve its activities (PE4)
50 4.36 0.631 4 4
Stakeholders Value Excellence
The Organization has a good overall image (SE1) 50 4.50 0.505 4.50 4
The Organization cares about its stakeholders (SE2) 50 4.48 0.505 4 4
The Organization provides good value for money for
its stakeholders (SE3)
50 4.46 0.503 4 4
The Organization has good quality reputation (SE4) 50 4.46 0.542 4 4
The conducted analysis shows that the concept of business
excellence is properly applied in the analyzed company. However, the key
limitation of our research is the inability to measure business excellence, or
to determine the Kani’s Business Excellence Index, due to the limited
availability of data. The results of this, and future research, can have
significant practical managerial implications. Future research should focus
on the analysis and measurement of business excellence.
CONCLUSION
Kanji model is created mainly to improve performance of companies, focusing on the main areas that need to be improved. Kanji model, as well as other current models, is characterized by a balance of
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financial and non-financial performance, multi-dimensionality, and focuses on key stakeholders, organizational units, processes and activities, as well as the observation and measurement of company performance from multiple perspectives. Kanji Business Excellence Model, with its two structural parts, KBEMS and KBS, includes multiple criteria, corresponding to critical success factors, and provides a unique view of the company’s operations in several dimensions, i.e. perspectives. KBEMS measures company performance by integrating KBEM internal perspective and KBS external stakeholder perspective, providing a comprehensive final outcome that reflects the relationship between all the key areas and their combined impact on business performance.
This model, like most others, is not perfect, nor an ideal model for measuring and managing company performance. Although the creator of this model believed that the use of the measuring system within KBEM would bring significant performance improvement, many companies failed to achieve the ultimate goal. The most common reasons for the failure were the complexity of the measurement process and insufficient participation of company employees. The measurement system within KBEM, as a complementary part of the Kanji model, was, due to some disadvantages, replaced with Kanji’s ranking-based model, which can be applied to all companies and can help company management to find areas that need improvement.
Kanji model, through its two structural elements, by combined measurement and harmonization of financial and non-financial criteria, provides information on the achieved business excellence. However, Kanji model, being based on business excellence critical success factors, does not specify performance, but gives an indication of how to get there. Furthermore, this model does not connect directly targets with process performance measures, i.e. it does not specify their interdependence. Therefore, research should go in the direction of improving the existing or developing new models, based on the goals aligned with stakeholder requirements, and linking them with key process performance measures.
In order to establish and strengthen their competitive advantage, Serbian companies should also rely on the concept of management based on organizational excellence and measure performance using modern and integrated models. In order to identify the treatment of the concept of business excellence, research was conducted in a large company in the field of manufacturing industry. The results of the survey showed that respondents correctly evaluate different aspects of business excellence, but that in practice there are numerous problems in measuring business excellence. Therefore, future work of researchers should focus on popularization of performance measurement models and their improvement, and companies should base their business on business excellence and model application, in order to achieve enviable competitive position on the domestic and foreign markets in terms of globalization and joining the European Union.
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КАЊИЈЕВ ИНТЕГРАЛНИ МОДЕЛ У ФУНКЦИЈИ
МЕРЕЊА ПОСЛОВНЕ ИЗВРСНОСТИ
Весна Јањић, Мирјана Тодоровић, Јасмина Богићевић
Универзитет у Крагујевцу, Економски факултет, Крагујевац, Србија
Резиме
За постизање врхунских резултата у савременим условима пословања неопходна је што интензивнија усмереност предузећа према концепту управљања заснованом на пословној изврсности. Концепт пословне изврсности омогућава да се визија пре-дузећа трансформише у реалност. Предузећа која се могу означити пословно извр-сним карактерише раст базе купаца, унапређење укупне профитабилности и вредно-сти за стејкхолдере. Пословна изврсност подразумева истовремено мерење нивоа за-довољства купаца, радника и стејкхолдера. У савременим условима пословања, ме-наџмент предузећа треба да постигне пословну изврсност у четири кључна подручја, и то: максимално повећати вредност за стејкхолдера, остварити изврсност у послов-ним процесима, унапредити организационо учење и омогућити остваривање задо-вољства купаца. Постизање пословне изврсности подразумева да предузеће подјед-нако вреднује сва четири подручја, а не да се усредсреди искључиво на финансијску перспективу пословања. У вези са мерењем пословне изврсности, неопходно је пра-вилно изабрати модел за мерење и управљање перформансама. Свако предузеће у складу са сопственим циљевима и стратегијама дизајнира одговарајућу свеобухват-ну и кохерентну структуру мерила перформанси стварајући савремени мултидимен-зионални систем. Један од таквих модела је и Кањијев систем за мерење пословне изврсности. Кањијев систем за мерење пословне изврсности (Kanji’s Business Excellence Measurement System – КBЕМS) представља савремени инструментариј за мерење и процену пословне изврсности. Као интегрални модел, обухвата процену перформанси из интерне и екстерне перспективе, финансијске и нефинансијске, те представља јединствен и комплементаран поглед на пословну изврсност предузећа кроз своја два структурна елемента – КBЕМ и КBS.
Примена КBEMS захтева правилно разумевање KBEM и KBS са циљем исто-времене примене и формирања јединственог и комплементарног погледа на по-словне перформансе предузећа. KBEM је усредсређен на систем интерних процеса и представља узрочно-последични модел пословне изврсности који се састоји из че-тири кључне димензије: менаџмента, основних принципа, концепата и пословне изврсности. Основна идеја KBEM је да се укаже на постојање везе између поме-нутих димензија, односно кључних фактора пословног успеха како би се побољшале пословне перфoрмансе у предузећу и остварила пословна изврсност. Примена мерног система у овом моделу треба да укаже која побољшања и у којим областима имају највећи утицај на укупан резултат пословне изврсности.
KBS модел мери перформансе предузећа из спољашње перспективе, при чему основу мoдела чине организациона вредност, процес изврсности, организационо учење и задовољство стејкхолдера. Ефикасно управљање критичним факторима успеха треба да резултира у побољшању финансијског резултата и пословне извр-сности предузећа. Дакле, према KBS, пословна изврсност може се постићи осмишљавањем вредности, стварањем савршенства процеса, унапређењем организа-ционог учења и повећањем задовољства стејкхолдера.
Укупна успешност предузећа треба да се оцењује на основу мерења перформан-си из спољашње и унутрашње перспективе како би се формирао јединствен и ком-плементаран поглед на пословне перформансе предузећа изражен Кањијевим си-стемом за мерење пословних перформанси.